Programmer by day, comic nerd by night. My official job title is "Director of Janitorial Engineering"
Here is a news story that came out last week (I like to let things "stew" for a while before going off half cocked).
(CNN) -- Fannie Mae said it will set aside the loan of a woman who shot herself as sheriff's deputies tried to evict her from her foreclosed home.
Addie Polk, 90, of Akron, Ohio, became a symbol of the nation's home mortgage crisis when she was hospitalized after shooting herself at least twice in the upper body Wednesday afternoon.
On Friday, Fannie Mae spokesman Brian Faith said the mortgage association had decided to halt action against Polk and sign the property "outright" to her.
"We're going to forgive whatever outstanding balance she had on the loan and give her the house," Faith said. "Given the circumstances, we think it's appropriate."
Are you serious? Someone tries to take their own life because they got in upside down on a house and you are going to forgive them their debts? How many gun toting people are going to "attempt" to kill themselves now to get their homes free?
Well...surely then she must have been a victim of predatory lending and had one of those exotic mortgages right?
In 2004, Polk took out a 30-year, 6.375 percent mortgage for $45,620 with a Countrywide Home Loan office in Cuyahoga Falls, Ohio. The same day, she also took out an $11,380 line of credit.
Over the next couple of years, Polk missed payments on the 101-year-old home that she and her late husband purchased in 1970. In 2007, Fannie Mae assumed the mortgage and later filed for foreclosure.
Ummm....what? She has a 30 year fixed rate mortgage with a rate that was .125 higher than my first rate (I refinanced earlier this year) and I have excellent credit. She doesn't appear to have been scammed.
If anyone should have been forgiven of their loan it should have been the mom back in July that killed herself and told her husband and son to use the money to pay off the house.
I whole heartedly disagree with the precedent set. Just wait until the flood gates open.
Here are links to the sources:
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